These properties are not part of the nickel property package proposed to be spun out.
VQA may earn up to an 80% interest in the Project by undertaking work and payments in three defined earn-in stages. VQA may earn an initial 49% interest (Stage 1) in the Project by paying the Company
VQA will issue a further
After successful completion of (a) Stage 1, if VQA elects to not enter the next stage or fails to make the Stage 2 option payments when and as required; or (b) Stage 2, if VQA elects to not enter the next stage or fails to make the Stage 3 option payments when and as required; or (c) Stage 3, a joint venture will be formed and the parties will either co-contribute on a simple pro-rata basis or dilute on a pre-defined straight-line dilution formula. Any party diluting to a 10% interest will automatically forfeit its interest in the Project and in lieu thereof will be granted a 2% net smelter return ('NSR') royalty on the Project, half of which NSR (i.e., 1% NSR) may be purchased by the other party at its sole discretion for
During Stage 1 and Stage 2 of the option agreement, CanAlaska will be operator of the Project and will be entitled to charge an operator fee. VQA will have deciding voting rights on annual exploration programs while sole funding at the various option stages and will have the right to assume operatorship after successfully earning a 70% interest in the Project (Stage 2).
An Area of Mutual Interest ('AMI') will extend two kilometres from the outer boundary of the Project, excluding all properties within such area that are currently held by CanAlaska.
Valterra is currently conducting due diligence on the properties comprising the Project. Upon successful due diligence, the parties will work towards finalizing and executing a formal agreement. The Company will provide updates on this transaction if and when they become available.
Optioned North Thompson Nickel Projects
The Project consists of the 'Strong' 1067A, the 'Strong Extension' 1167A, the 'Moak North' 1168A, and 'Wilson' 1169A mineral exploration licenses ('MEL') with a total combined area of 30,283 hectares. The Project is located approximately 30 kilometres from the
The project covers much of the northern extension of the Thompson Nickel Belt (TNB), the fifth largest sulphide nickel camp in the world based on contained nickel endowment. The largest deposit within the TNB is the main
The Project area hosts the same geological and structural environment as the nearby
The nearby Mel nickel deposit, 100%-owned by CanAlaska, with a historical indicated resource estimate of 4.3 million tonnes at an average grade of 0.875% nickel for 82.5 million pounds of contained nickel is approximately four kilometres south of the Strong property.
CanAlaska CEO,
About
Contact:
Tel: +1.604.688.3211 x 138
Email: cbelyk@canalaska.com
Forward-looking information
All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company's control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.
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